All three presidents mentioned that since fighting the epidemic and supporting enterprises to resume work and production, their banks have increased their credit supply in the first half of this year. For example, Wu Fulin said, as of the end of June, the balance of domestic and foreign currency loans of the export import bank reached 4.14 trillion yuan, a year-on-year increase of 16.8%, of which RMB loans and new loans reached a record high.. Gu Shu said that we will effectively increase the total amount of credit supply, and new loans in the first half of the year hit a new high in the same period..
At the same time, the loan interest rate also further reduced. The average interest rate of new RMB loans issued by ICBC in the first half of the year was 4.31%, down 45bp year on year. The weighted average interest rate of Everbright Banks new loans for small and micro enterprises is 4.99%, which is 87bp lower than that in 2019.
Moreover, at the recent mid year work meeting held by the China Banking and Insurance Regulatory Commission (CIRC), it was also revealed that the supervision requires the banking and insurance industry to better combine stabilizing the employment of enterprises with serving private enterprises, small and micro enterprises, and spare no effort to promote economic and social recovery. In order to reduce the financing cost of enterprises, the financial system should make reasonable profits of 1.5 trillion yuan to all kinds of enterprises throughout the year.
How to expand the loan volume and reduce the cost
According to Wu Fulin, the Export Import Bank of China has given top priority to supporting and stabilizing foreign trade in response to the epidemic situation. It has continued to expand credit for foreign trade industries, and has given priority to new credit plans and loans due for recovery into foreign trade fields, so as to ensure the stability of foreign trade industry chain and supply chain. A number of unconventional and phased credit policies were introduced, and a special credit audit team was set up to ensure foreign trade credit. In order to improve the service penetration rate of foreign trade enterprises, we use big data to screen the list of enterprises with import and export performance, and provide accurate docking support. In the first half of the year, 904.7 billion yuan was invested in stabilizing foreign trade and foreign capital loans, with a year-on-year increase of 50.62%.
In the fight against the epidemic situation, the Export Import Bank of China issued 20 billion yuan of anti epidemic theme bonds and anti epidemic and resumption of production theme bonds, and the funds raised were specially supporting enterprises to fight the epidemic and resume production. We formulated 23 special policies and measures to support epidemic prevention and control and economic and social development in Hubei Province, and issued 5 billion yuan theme bonds to support the revitalization of Hubei Province.
Gu Shu also said that in terms of supporting enterprises to return to work and production, ICBC has carried out spring run action, providing a total of 1.18 trillion yuan of full-scale financing support, including 944.7 billion yuan of loans involving 41000 enterprises. In terms of bond financing, ICBC underwritten more than 910 billion yuan of various debt financing instruments in the first half of the year, up 25% year-on-year.
According to Liu Jin, in the first half of the year, Everbright Bank has invested nearly 90 billion yuan in on balance sheet and off balance sheet financing for enterprises related to medical and health care and living material security, and provided more than 150 billion yuan of on balance sheet and off balance sheet financing support to the four troubled industries, namely, wholesale and retail, accommodation and catering, logistics and transportation, and cultural tourism.
Liu Jin said that China Everbright Bank regards manufacturing industry, private enterprises and small and micro enterprises as the main position of serving the real economy and the priority areas of credit support. For medium and long-term loans to the manufacturing industry, according to the regulatory requirements, it implements the policies of reducing loan points through FTP, decentralizing quota management authority, and expanding loan pricing authorization. By the end of June, the balance of manufacturing loans had increased by 11.32% over the previous year, which was higher than the average growth rate of all loans. Among them, the balance of medium and long-term loans increased by 23.63% over the beginning of the year, 17.6 percentage points higher than that of the same period last year, realizing the double growth of medium and long-term loans in manufacturing industry and manufacturing industry, and the year-on-year growth rate reached a new high of Everbright Bank in recent years.
At the same time, the bank also increased the weight loss profit, reducing the financing cost of enterprises.
Taking industrial behavior as an example, Gu Shu disclosed that ICBC actively promoted the conversion of pricing benchmark for existing corporate customers loans, and the conversion progress reached 76% at the end of June; the average interest rate of newly issued RMB loans in the first half of the year was 4.31%, with a year-on-year decrease of 45bp. In contrast, the interest rate of the newly issued inclusive loans was lower, only 4.15%, a further drop of 37bp compared with last year. If considering the reduction of fees and profits, the comprehensive financing cost of small and micro enterprises will drop by 87bp.
In addition to the banking industry, the insurance industry has also given full play to its security function.
According to Liu tingjun, Taikang asset investment bank has 97.2 billion yuan in deposits, 15 billion yuan in general bonds and special bonds of local governments at all levels, 108.4 billion yuan in bonds of state-owned enterprises and private enterprises, raised Taikang Yangtze River Economic Belt bond type securities investment fund, and added 33.3 billion yuan in financial products such as debt investment plans and trust plans, focusing on infrastructure and transportation Through the construction, medical and health industries. At present, Taikang has invested nearly 60 billion yuan in Hubei.
What risks should be exposed in succession
For enterprises facing difficulties affected by the epidemic, the financial executives also explained the relevant specific and effective assistance measures.
Wu Fulin said that stable credit and stable support should be provided to those enterprises that have encountered operational difficulties temporarily but have market, project development prospects and technology with market competitiveness, so as to ease the financial shortage of enterprises in special period.
According to Gu Shu, ICBC ensured that the growth of inclusive loans was more than 40% over the beginning of the year, focusing on increasing credit loans, increasing the proportion of medium and long-term loans, and increasing support for first loan households. We should implement the policy requirements of extending the principal and interest rates, extend loans to small and micro enterprises, and support them to tide over difficulties.
At the CBRCs mid year working meeting, the regulatory authorities also mentioned that we should plan ahead of time to deal with the substantial growth of non-performing assets in the banking industry, strictly classify the quality of assets according to the principle that substance is more important than form, make real profits, make adequate provisions, supplement capital, and enhance the ability to resist risks.
Whats the prediction for this years bad situation? Liu Jin, President of Everbright Bank, said in response to a reporters question from the 21st century economic report: financial risks have always existed, and the impact of the epidemic on the economy is a greater risk faced by financial institutions at present. In this sense, to stabilize the economy is to stabilize finance, and financial support to the development of the real economy is to support its own development, which is to fundamentally prevent and control financial risks. .
According to Liu Jin, in response to risks, regulators have also issued a lot of policy support to deal with risks and mitigate risks. For example, the policy of delaying debt service for small and micro enterprises. At present, Everbright Bank has delayed the repayment of capital by 13.5 billion yuan to more than 30000 enterprises and about 900 million yuan to more than 30000 enterprises.
He stressed: especially in the first half of this year, we focused on fighting the epidemic, supporting the real economy, supporting the resumption of work and production, and issued a large number of loans, which will certainly not be due within this year. If there is any problem, it may be in the first quarter and the second quarter of next year, especially those small and micro enterprises that have delayed the repayment of principal and interest. At that time, affected by the epidemic situation, whether they can restore production capacity and cash flow in time, there are still some uncertain factors